Federal Bank to consider $500 million medium-term note programme on September 17

Federal Bank gets board nod to raise up to $500 million through foreign currency bonds


Kerala-based lender Federal Bank Ltd on Friday (September 11) said its board will meet on September 17, 2026, to consider and approve a proposal to establish a medium-term note programme for raising funds of up to the equivalent of $500 million through foreign currency-denominated debt securities and other permissible instruments.

The proposed programme will allow the bank to raise funds through one or more branches, including its head office and the IFSC Banking Unit (IBU) in GIFT City, in one or more tranches.

The board meeting will also consider modifying the earlier approval given on August 21, 2026, for issuing foreign currency-denominated bonds through the bank’s IBU at GIFT City. The proposed fundraise will be subject to applicable regulatory, statutory and other approvals, consents, permissions and compliances.

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First Quarter Results

Federal Bank reported its Net Interest Income (NII) of ₹2,946 crore during the June quarter, which is 26% higher than the ₹2,336 crore it reported during the same quarter last year.

Federal Bank’s net profit for the April to June quarter increased by 36.5% from the same quarter last year to ₹1,177 crore. The figure was higher than the previous cycle’s figure of ₹862 crore.

Asset quality declined from the previous quarter. Gross NPA stood at 1.52% from 1.62% sequentially. Meanwhile, net Non-Performing Assets (NPA) slipped to 0.18% from 0.20% during the previous quarter. The net NPA figures stood at ₹506 crore, compared to ₹569 crore in the April quarter.

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Provisions for the quarter stood at ₹ 317.7 crore from ₹741 crore in the previous quarter and ₹400 crore in the previous year. Federal Bank NIM for the first quarter of the new FY was 3.33%, compared to 2.84% (YoY).

Shares of Federal Bank Ltd ended at ₹344.40, down by ₹2.60, or 0.75%, on the BSE.



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